We’ve said this before, and we’ll keep saying it: benefits are key to a great workplace culture.
A great total rewards program should cover and support a diverse range of needs for your employees.
Backed by Data: Our State of Workplace Empathy study finds that 2 in 3 employees are willing to leave their current job for a more empathetic employer, even if that means changing their role or career trajectory.
But what exactly is a benefit? And what is the difference between a benefit and a perk? Is it a matter of semantics, or is there a meaningful distinction to employees that can impact your compensation, recruitment, and retention strategies?
While there isn’t a hard and fast rule, a helpful distinction between benefits and perks is this:
These include things like an EAP, medical insurance, retirement savings, and mental health benefits. These benefits typically help pay for or offset costs that an employee would typically have to cover out of pocket.
Perks frequently provide an experience for employees but aren’t necessarily a form of compensation. These might look like employee resource groups or committees, snacks in the office, or even employee recognition programs or events.
Of course, there is room for discussion around whether a particular program or free item counts as a benefit or a perk, but when it comes to the extras that go above and beyond traditional benefits, we’re seeing them become more valuable to employees.
As core benefits like health coverage and 401(k) contributions become table stakes, perks can act as the “nice to haves” or “over and above” that sway an employee’s decision to take a job offer with your company, or to stay and not take an offer with a different organization. The following are examples of perks that are growing in popularity.
When someone does great work or meets an important milestone, employers should recognize that to make them feel valued for their contributions. Whether it’s awards or company-wide shout-outs, a program to highlight employee excellence and achievements is a great perk that enhances the employee experience, especially when they can also be awarded by peers and colleagues. One way to make this tangible for employees is to offer a points-driven program where employees can earn points for their accomplishments, and they redeem them for items (think Apple Watches and Fitbits), or events such as sports tickets or local attraction/museum passes. Through our internal appreciation platform, called The Road, our employees recognized their peers 35,600 times in 2018.
When employees donate time to a cause that they’re passionate about, it enriches their lives and their communities. At Businessolver, we’ve seen the positive impact that employees can make volunteering in their communities. So when employers set aside time for them to do so, it eases employees’ stress about adding another commitment to their already busy lives, and it gives them the opportunity to have a rewarding experience they may not otherwise have.
From stocked snack bars to wellness apps, perks often appear small but add up in boosting morale. Personal touches like birthday gifts or coffee subscriptions also leave lasting impressions.
Don’t underestimate how these “extras” can strategically reinforce a company’s culture, values, and employer brand.
While perks are exciting, benefits remain non-negotiable in any total rewards program, especially if you hope to recruit and retain top talent. Employees expect these offerings, and they’re often the first criteria they consider when evaluating job offers next to pay.
Here are some of the top benefits employees say they value most:
Whether it’s health insurance or mental health support, investing in employee wellness is the ultimate “must-have.” After all, happy and healthy employees are productive employees.
Planning for the future is critical. 401(k)s, pensions, and student loan repayment programs are foundational benefits that employees deeply appreciate.
Reliable and flexible PTO policies give employees the breathing room they need to recharge. Transparent leave policies also signal that a company truly values work-life balance.
The magic happens when benefits and perks are designed to complement each other. A cohesive approach shows employees that your company is invested in their whole selves—not just their roles at work. Frederick Herzberg’s theory of job satisfaction breaks this concept down into two key dimensions: hygiene and motivation.
Hygiene factors, like clear company policies, fair supervision, and adequate salaries, don’t necessarily make employees love their jobs, but their absence can wreak havoc. For example, confusing policies can frustrate staff, whereas transparent guidelines and comfortable workspaces help create a baseline environment where satisfaction can flourish. Addressing these hygiene factors is the first step in minimizing dissatisfaction and laying the groundwork for a positive workplace.
Motivators drive deeper job satisfaction and help drive a greater feeling of engagement and accomplishment at work. Motivators might include elements like recognition, meaningful responsibilities, and opportunities for advancement. Highlighting employee achievements, streamlining unnecessary tasks, and fostering individual growth opportunities not only improve productivity but also create a culture where staff feels valued and purposeful.
As hybrid and remote work environments continue to evolve, the balance between perks and benefits is critical. Integrating digital-first solutions (like telehealth and virtual events) will help meet the needs of today’s employees.
Learn more about why benefits engagement can drive real results for your organization.
